Redundancy Notices Procedural as Sugar Workers Transition to New Management.

Employees of Muhoroni Sugar Company and South Nyanza Sugar Company have been issued redundancy notices as part of the transition process.

This follows the government’s decision to lease state-owned sugar mills to private investors.

In separate notices, the two factories informed staff that their contracts will end on October 31, in compliance with the Employment Act, 2007 and directives from the Ministry of Agriculture and Livestock Development. 

Muhoroni Sugar Company (in receivership) said the move follows the official handover of factories to investors on May 10.

“The employees are therefore advised to treat this communication as a formal notice of termination of employment due to redundancy,” said the joint receiver and manager, Harun Kirui. 

Sony Sugar managing director Martin Dima issued a similar communication.

Dima assured staff that they will receive separation letters indicating their lawful entitlements under redundancy provisions and CBAs. 

Agriculture PS Kipronoh Rono in a memo dated August 12, directed the sugar companies’ management to issue termination notices to staff as required by law. 

“In light of the ongoing restructuring of public sugar companies under the leasing framework and in accordance with the provisions of Section 40 of the Employment Act, 2007 and the respective CBAs, you are hereby directed to issue formal redundancy notices to all affected employees,” the PS stated. 

He further directed that notices should clearly state the reasons for termination, outline entitlements and provide assurance that all dues would be fully settled.

The notices should also be copied to county labour officers.

The directive was sent to the managing directors of Nzoia, Sony, Chemelil and the joint receiver manager of Muhoroni Sugar Company. 

The Kenya Union of Sugar Plantation and Allied Workers told workers that the redundancy notices do not mean automatic job losses. 

Secretary general Francis Wangara explained that the notices are procedural since employees are moving from the old government-managed firms to new investor-led management. 

“The government has undertaken to pay salaries up to October 30. From November 1, employees will work under the new management. What has been issued is just a procedural requirement, not a signal of mass job losses,” Wangara said. 

He added that the union has appealed to the new lessees to retain as many workers as possible and continues to engage transition committees to safeguard employees’ welfare. 

“And some of the companies have assured that they will retain all the workers.”

The restructuring of public sugar mills is part of the government’s plan to revive the struggling sector through private investment. 

For years, state-owned factories have faced mismanagement, mounting debts and inefficiencies that crippled production. 

With the handover complete, new investors are expected to inject fresh capital and modernise operations, raising hopes of reviving cane farming and sustaining jobs.